Azure Power Announces Pricing of its IPO

Last month Azure Power announced the launch of its initial public offering (IPO) of 6,818,182 equity shares. Now the company has announced the pricing of its initial public offering of 3,409,091 equity shares, including 2,242,424 equity shares to be sold by Azure Power and 1,166,667 shares to be sold by certain selling shareholders, at a price of $18.00 (Approximately Rs. 1200) per equity share to the public.

The company has granted the underwriters a 30-day option to purchase up to an additional 511,364 equity shares at the initial public offering price, less underwriting discounts and commissions. The equity shares are trading on the New York Stock Exchange starting October 12, 2016 under the symbol “AZRE.”

Azure Power aims to use the net proceeds from the offering primarily to fund the purchase by Azure Power of equity shares of its subsidiary, Azure Power India Private Limited (“AZI”), and to fund future operating expenses of Azure Power.

Azure Power will receive gross proceeds of $75 million from the sale of equity shares in connection with a concurrent private placement transaction at a price per share equal to $18.00 per equity share. The gross proceeds to Azure Power and the selling shareholders from the initial public offering and the concurrent private placement are expected to be approximately $136.4 million, before deducting underwriting discounts and commissions and estimated offering expenses.

Net proceeds to be received by AZI as a result of such purchase are intended to be used for growth capital requirements, new project development and other general corporate purposes.

 Barclays and Credit Suisse are acting as joint book-running managers of the offering. Roth Capital Partners is acting as a co-manager of the offering.